DeFi Platform SushiSwap abandons launchpad and lending protocol
DeFi platforms are getting popular and everything did very well in the last bull run. But the crypto winter hits hard in every sector of crypto. As a result, it becomes difficult to run the business without making some harsh decisions.
SushiSwap, an Ethereum-based Decentralized Finance (DeFi) protocol, decides to discontinue its launchpad and lending protocol. They are going through a hard time and facing financial difficulty. Trading volume declines over time and the present situation is not going to improve any time soon due to the bear market and macroeconomic situation.
According to the CTO of SushiSwap Matthew Lilley, SushiSwap's lending protocol Kashi ran at a loss. Not only that, it has some design flaws as well as a lack of resources to employ there. They also abandon the launchpad operation due to the lack of resources.
People face different challenging situations in a bear market. Sometimes the situation gets too difficult to handle. If the company does not take the necessary steps to cut down its expenses and stop underperforming features, it will be difficult to survive in a bear market. Decentralized Finance protocol SushiSwap changed its focus from launchpad and lending protocol.
Jared Grey, SushiSwap’s CEO stated that SushiSwap experienced a $30 million loss in the last 12 months. So the overall situation does not look good. Since we are still in a bear market, you cannot expect things will change quickly.
It was also highlighted that SushiSwap has only enough funds that will last one and a half years. They have to make the hard decision so that they can cover the operating costs to run the operation.
Since the crypto market is down, it affects all crypto prices. SUSHI token price falls following the overall market situation. And the decline of whale interest in SUSHI is considered an alarming sign. There is a sale pressure in the market.
Decentralized Finance (DeFi) will do better in the future. We see how wrong things can go trusting centralized crypto exchanges. The dramatic collapse of FTX makes it clear how much trust you can put on a centralized crypto exchange.
A bear market is a hard time for everyone. It can also be a great time to hustle and make development for grabbing opportunities so that you can get the best in the next bull run.
So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
Reference: 1
